Shreveport, LA, September 10, 2025
News Summary
A recent audit of Shreveport’s finances has uncovered significant mismanagement, including accounting errors, IRS penalties, and unauthorized expenditures. Conducted by Carr, Riggs and Ingram, the audit details concerns about the tracking of employee time and spending practices, highlighting the need for better oversight mechanisms. With the city’s finances at risk, urgent corrective actions are being called for to restore accountability and transparency. Local council members are urging investigations into the findings, prompting discussions about the city’s financial governance.
Shreveport Audit Reveals Financial Mismanagement, Calls for Oversight
The Louisiana Legislative Auditor released a concerning annual financial audit for the City of Shreveport, uncovering significant accounting flaws and misappropriations in the city’s finances for the year 2024. The report, conducted by Carr, Riggs and Ingram, L.L.C., outlines several critical areas where the city’s financial management has fallen short, prompting urgent calls for increased oversight and corrective measures.
Among the most alarming findings, auditors reported notable errors in the tracking of compensated absences for police employees, a $1.7 million penalty assessed by the IRS for late filings, and incidents of improper expenditures, including an officer found to be working another job while on city time. These issues highlight not only mismanagement but also significant risks in the oversight of financial transactions within the city’s administration.
Problems Identified in Compensation and Expenditures
The audit revealed several discrepancies in compensated absence reports, with auditors identifying 72 instances of improperly calculated ending balances, 11 employees holding negative comp time, and one employee who utilized more vacation time than accrued. These accounting errors stemmed from a manual tracking system in the police department that lacked adequate controls, suggesting a need for improved management practices.
In an additional finding, the report highlighted unauthorized expenditures, including $4,317 related to a police officer violating city policy by taking a second job during paid hours. To mitigate further risks, the audit recommended that an independent party review the accuracy of compensated absence documentation.
Financial Oversight and Procurement Violations
The audit raised concerns regarding wire transfer protocols, noting that approvals were made by an Assistant to the Director of Finance, which could lead to unauthorized transactions. The auditors recommended that all wire transfers receive approval directly from the Director of Finance going forward to enhance security measures. Furthermore, two procurement processes were identified as unadvertised, a clear violation of Louisiana bid law, necessitating immediate corrective actions to align with advertising requirements.
By the end of 2024, eight city funds reported negative balances due to long-term obligations and expenditures outpacing available resources. To address these issues, the audit urged the implementation of a corrective action plan focused on monitoring revenue and expense trends and revising financial policies.
IRS Penalties and Employee Overpayments
The audit also pointed to the city’s failure to meet compliance regarding the Affordable Care Act, resulting in $1.7 million in IRS penalties due to late filings linked to poor departmental monitoring and staff turnover. Auditors recommended that processes be established for timely filing of all federal and state documents to avoid future penalties.
An additional complication arose when an administrative assistant on disability was overpaid $58,000 due to a lack of communication between the police department and payroll regarding the employee’s status change. Currently, options for repayment are being developed.
Concerns Regarding Mayor’s Expense and Compliance
Further scrutiny has turned to Mayor Adrian Perkins, with the audit revealing his travel expenses between 2019 and 2021 totalling $35,845. Issues surrounding policy violations, particularly regarding the mayor’s procurement of insurance changes without proper approval, have sparked inquiries. Although the mayor has reimbursed the city for some violations, unresolved issues remain, including absent receipts and expenses exceeding per diem allowances.
In light of these findings, Council member John Nickelson has called for a state investigation into allegations of financial improprieties after receiving complaints from a former city employee. The Legislative Auditor’s Office is considering an investigation into the Shreveport Finance Department based on the audit results and these emerging complaints.
Next Steps for Shreveport’s Financial Management
The findings from this audit raise significant red flags regarding Shreveport’s financial management practices. Immediate actions and oversight enhancements seem necessary to rectify the identified issues and promote transparency and accountability within the city’s financial processes.
FAQ
What did the recent audit reveal about Shreveport’s finances?
The audit identified several areas of financial mismanagement, including accounting errors in compensated absences, IRS penalties, unauthorized expenditures, and violations of procurement laws.
Who conducted the audit for Shreveport?
The audit was prepared by Carr, Riggs and Ingram, L.L.C. as part of the annual review mandated by the Louisiana Legislative Auditor.
What are the potential consequences of these findings?
The findings have led to calls for increased oversight of the city’s finances and the potential for an investigation into the Finance Department to address allegations of financial improprieties.
What recommendations did the auditors make?
Auditors recommended improved accuracy checks for compensated absence reports, better oversight of wire transfers, adherence to procurement laws, and timely filing of IRS forms to prevent future penalties.
Key Issues Summary
| Issue | Description |
|---|---|
| Compensated Absences | Errors identified in tracking compensated absences for police employees. 72 incorrectly calculated balances. |
| IRS Penalties | City incurred $1.7 million penalties due to late filings linked to poor monitoring. |
| Improper Expenditures | Unauthorized expenses, including a police officer working a second job during paid time. |
| Procurement Violations | Two procurements were conducted without appropriate advertising, violating state law. |
| Overpayment Issues | An employee was overpaid $58,000 due to a lack of communication regarding status change. |
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Additional Resources
- The Center Square: Louisiana Audit Findings
- Shreveport Bossier Advocate: Audit Overpayment and Penalties
- Shreveport Times: Investigative Audit Findings
- Google Search: Shreveport Audit
- KSLA: Allegations Against Shreveport’s Finance Department
- Encyclopedia Britannica: City Finance Management
Author: STAFF HERE SHREVEPORT WRITER
The SHREVEPORT STAFF WRITER represents the experienced team at HEREShreveport.com, your go-to source for actionable local news and information in Shreveport, Caddo Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mudbug Madness Festival, Red River Revel Arts Festival, and Independence Bowl. Our coverage extends to key organizations like the Shreveport-Bossier Chamber of Commerce and Shreveport Regional Arts Council, plus leading businesses in gaming, healthcare, and energy that power the local economy such as Horseshoe Casino, Ochsner LSU Health, and Atmos Energy. As part of the broader HERE network, including HEREBatonRouge.com and HERENewOrleans.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
